What is Open Banking?
Open Banking's core function is to give the people control over their financial data.
Who controls my financial data right now?
Currently, the banks control your financial data and there is not much you can do with it besides downloading PDF statements.
Why do I need control of my data?
Controlling your financial data will change how you make and manage money. The banks will continue to store your data but the data will be owned by you and shareable with third-parties.
Imagine easily sharing financial information with your money advisor or finance app to make better investment decisions. Or imagine starting a business and easily sharing your company's financials with an accountant or fintech app. These are only 2 examples among hundreds of different possible life improvements.
How will Open Banking work?
Last August, Finance Minister Chrystia Freeland released the open banking advisory committee’s final report calling for the government to introduce the first stage of open banking by 2023, and quickly appoint an open banking lead to oversee its development and implementation.
In the same month, National Bank of Canada invested $103M in a Montreal-based startup called Flinks, in order to accelerate the rollout of open banking in Canada.
In late November, Flinks launched a new product called the Open Banking Environment (OBE) in collaboration with National Bank, which will allow FinTechs to securely access financial data from the banks.
When will I see the benefits of Open Banking?
We expect significant banking improvements between 2022 and 2023. With the threat of Decentralized Finance and Cryptocurrencies looming over traditional monetary systems, the rollout of Open Banking needs to be brisk. Canadians deserve a more modern financial system and the OBE platform is a welcome start.